Bitcoin’s surge continued to $73,000 as investors focused on speculative inflows to the ETFs.
BTCUSD – Weekly Chart
The move from $40,000 to the current levels has been sharp, and investors should be careful about following it higher. There will be good trading opportunities in BTC as it posted a 44% gain within 16 days, reflecting increased demand for spot Bitcoin exchange-traded funds (ETFs) listed on the New York Stock Exchange.
The funds saw a record inflow of $1 billion in one day on March 12. Traders are now looking to the $80,000 level, with investors continuing to add bullish bets.
Some analysts say BTC is being used to hedge against US monetary policy, especially following the 3.2% increase in the Consumer Price Index (CPI) in February. There is also speculation that the Federal Reserve will start to unwind its decades-high interest rate levels.
Much of this move is speculation based on Fear of Missing Out (FOMO). Inflows to a fund do not ensure it will remain on an uptrend, as that will depend on market conditions.
Significantly, institutional investors are now entering the world of cryptocurrency, with the listed Bitcoin ETF products attracting around $5 billion in capital over the past two weeks. However, the increased speculation poses a risk for traditional crypto investors, and Wall Street firms increasingly control the supply of Bitcoin.
The broader crypto market is also benefiting with the top ten coins in the green this week.
